First investment

10 Replies

Very common thread i get it!  Im new here... So i want to throw this out.

Im 31 own a home in the bay area, not interested investing around here because numbers dont make sense....

I have about 150-200k to start my real estate portfolio.  I feel very blessed to have that much, i worked my tail off the hard way (9-5) to get it. Ive always had a real estate passion ie; read all the books, scowering online and watched all the shows....  Now i want to play

So id like some seasoned vets advice here, what would you do? (Im intereted in buying turn key SFR's around 100k in good markets)

Also happy yo be here on BP!

Welcome to BP!

I would strongly recommend that you begin attending local REIA (Real Estate Investors Association) meetings. This will help you meet other investors, and will expose you to deals.

It will also help you find people that you want to work with as you learn and grow.

@Brent Hanson

Welcome to Bigger Pockets. BP is full of resources. You will find resources here from blogs to pod casts and forums. You can also send messages to members which is my favorite part of the website.

Hi there Brent! I'm also new to BP and I'm just down the road from you here in the Bay Area. You're completely right about the numbers around here not making sense. I'm looking to invest in Tennessee, where I'm originally from. From what I've been reading here in the forums, you'll get plenty of good advice. Good luck!

@Brent Hanson

I know you are asking about turn-key investing, but I don't understand why you don't look in your own town.  Richmond, by Bay Area standards, is still very affordable and it looks like it is getting better. I am based in the South Bay, so I personally don't have any money tied up in that city because it is outside of my driving radius.  But if I felt I could deal with the commute distance, I would definitely put that town on my map.  $150k-$200k in cash is a good chunk of money. I would suggest your reach out guys like @J. Martin who have property in Richmond and get some local feed back before you start sending your money out of town.

Good luck,

Arlen

Thank you @Arlen Chou  

Ill contact him...

I just dont see money going very far even here in richmond..  Home prices are up and rents havrnt caught up from what i see

@Brent Hanson

 Hi and welcome to BP!  I am also a West Coast investor in turnkey out of state properties.  Mostly similar price point as what you are looking at.  Are you thinking of leveraging our cash (with lending) or making cash purchases.  With leveraging you could build up quite a portfolio very quickly, but you got to make sure you really are working with a turnkey company(ies) that you can trust and will deliver.  It is particularly important to make sure they have great property management in place.

A couple of folks on the site have put together a web site for Turn Key providers, Web Site

If you search bigger pockets there are several providers that are very active and have great reputations.  I would list them but I would leave out some and have people upset.  But if you go to the search feature, and input Turn key you will get lots of input

Sounds like a good plan to me! That's most of what I've invested in (out-of-state turnkeys in that range) while living in LA.

Originally posted by @Brent Hanson :

Thank you @Arlen Chou  

Ill contact him...

I just dont see money going very far even here in richmond..  Home prices are up and rents havrnt caught up from what i see

 Have you been under a rent rock Brent!? Rents are up 30-60% in Richmond since the crisis. So much so that the city council is considering implementing rent control again (for about the 10th time). I actually hope rent growth slows down a little so people calm down and don't implement legislation.. One of my appraisals from 2.5 years ago shows $850 for rent for a 2br, I'm charging $1,200, and market is $1,350-$1,500.

There are still good deals in Richmond. 4plexes on occasion that you can get better than the 1% rule, and some small houses where you can get pretty close to it..

You really need to nail down your rents first. Have you looked at new listings on Craigslist? Put in a max of $1,500 for  a 2br, and see where the listings are. Then $1700. Then $2000. It will give you a good idea of the rent ranges around the area.

I have a 4plex and 2 SFH in Richmond and still see some deals that I'm tempted on. If I was sitting on as much idle cash as you, I probably would have already bought them.. (in the last 2 months.. - not talking about last year or earlier..) I like the long-term prospects of Richmond because it is so affordable and still has a reasonable commute to major employment centers like SF, Oakland, Walnut Creek, etc. Plus BART & Freeways.

I'm not saying don't invest out of state, but as Arlen said, there are still deals if you keep your eyes open..

Investing out of state is an option but can be tricky. I suggest you get a solid foundation first...not sure your experience but make sure you are educated properly on the type of investing you plan to get involved in (rental, flip, wholesale, turnk-key, notes, etc). Next is network on BP & at local REIA's. Get to know some people and listen to their story...ask questions and just absorb as mucn info as you can. Then if you want to invest out of state you need to develop a strong team and you need a good person who is local to the area your investing in. Find a good realtor, lender, property manager, contractor etc and the rest will fall in place. If you dont properly vet your team you can get burned quickly and badly!

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